Today, I review another state's 529 college savings plan as part of the 529 Plan Series at JoeSangl.com!
Let me introduce you to the Virginia College Savings Plan.
This 529 plan is managed by one of my favorite mutual fund companies – American Funds.
What I Like About The Virginia College Savings Plan
- CollegeAmerica. This is the partnership between the Virginia College Savings Plan and American Funds. You can read about it in detail HERE. I really like American Funds' mutual fund offerings.
- Choices. American Funds offers 22 different mutual funds as part of the CollegeAmerica plan. You can also choose to put together a selection of the 22 different mutual funds and take an age-based approach toward your investment.
- Low Initial Investment Requirement. You only need $250 to get started with the CollegeAmerica plan. That makes this available to everyone!
- State Tax Deduction for Virginia Taxpayers. If you are a Virginia resident and contribute to this fund, you are most likely eligible to deduct those contributions from your state taxes! Virginia residents are allowed to deduct up to $2,000 PER ACCOUNT per year with unlimited carryforwards. NICE!
What I Would Like To See Improved
- This is a general improvement that I would like to see with all 529 plans, not just the Virginia College Savings Plan. I would really like to see contributions to ANY state's plan be DEDUCTIBLE from one's own state taxes. I know. I know. I am dreaming again, BUT it would really provide a huge incentive for states to have a great and competitive 529 plan.
Read reviews of other state 529 college savings plans HERE.
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